News

Archive for September, 2011

Transport Secretary proposes increasing motorway speed limit

Friday, September 30th, 2011

The government has said that it will examine proposals made by Philip Hammond, the transport secretary, to raise the speed limit on Britain’s motorways. Mr Hammond said that the 70mph restriction needed to be revised because huge advances in technology meant that cars were now capable of driving at higher speeds safely.

He pointed out that the 70mph limit, which was introduced in 1965, had become somewhat irrelevant as many of the countries motorists break it when travelling on the motorway. Mr Hammond wants to see the limit increased to 80mph and claims that doing so also made sense for the country’s economy. He said that millions would be saved by shortening journey times.

However, some groups have already started to criticise Mr Hammond’s suggestion. Brake, a road safety charity, said that it was inevitable that any increase in speed would lead to more deaths on the road.

Campaign for Better Transport said the plans were an empty gesture for drivers. Chief executive, Stephen Joseph, explained that an increase in speed meant an increase in fuel consumption which would not be good for the environment or for motorists’ wallets. He added that higher speeds would mean more casualties.

RAC Foundation director, Professor Stephen Glaister, said there were positive and negative aspects to pushing the limit up to 80mph. He said it was true that motorists would get where they needed to be in a shorter time but that an increase of 10mph would result in 20 per cent more fuel being burnt which means 20 per cent more pollution.

Minister calls for compulsory travel insurance

Thursday, September 29th, 2011

The plight of a British family struggling to pay medical expenses for a relative who is in hospital in Singapore has caused a government minister to call for compulsory travel insurance. North West Leicestershire Conservative MP, Andrew Bridgen, says the case of 30-year-old Matthew Taylor highlights the need for all those travelling abroad to take out adequate medical cover.

Mr Taylor has been recovering in a hospital in Singapore since he was involved in a motorcycle accident in July. He was a teacher in Bali at the time without any insurance which has left his family with a bill of £172,000. He remains in a serious condition which means he cannot fly home and therefore his family will be forced to continue paying for his treatment. Costs are currently around £2,000 per day.

According to Darrell Taylor, Matthew’s father, his son had decided against taking out cover because it would cost more than half his monthly wage. Mr Bridgen said it was essential that travellers realised the financial risk of travelling without proper insurance.

He highlighted the fact by saying that a car cannot go abroad without cover, so why should people be allowed to do so. He has suggested that checks be carried out at airports to flag up holidaymakers who do not have insurance.

Matthew’s father said he was sure his son would make a full recovery in time, adding that he did not know what the family was going to do if they ran out of cash.

Continental Airlines remains at Belfast after APD reduction

Wednesday, September 28th, 2011

Belfast’s single US airline route has been saved after it was agreed that Air Passenger Duty would be cut. The Continental Airlines service to Newark was threatened after the carrier said the rate of £60 added to every ticket could make the service uneconomical. As of 1 November APD on the international route will be in line with short-haul tax. Economy passengers will pay £12 and those flying in business- and first-class will pay £24.

The move comes as the Chancellor agrees to devolve control of APD in Northern Ireland to Stormont. First Minister Peter Robinson said losing the Continental service would have been a blow to the economy and to business confidence. He added that the decision was reached after months of negotiation and meant that reduced tax to long-haul destinations would ensure that the regions airports remained competitive.

Once the devolution process is complete, it is likely that the executive will be asked to agree that APD is reduced even further so that it comes in line with the rest of Ireland. John O’Dowd, Deputy First Minister, said the move had been strongly supported in the US adding that the route was important for investors.

Owen Paterson, Secretary of State, said he welcomed the decision and that it showed that Whitehall and Stormont were able to cooperate on issues which directly affected the region.

International Airlines Group, owner of British Airways, said the decision proved that the Chancellor was aware that APD was a destructive force when it came to keeping the country competitive.

Virgin approaches regulators over BMI slot sale to BA

Tuesday, September 27th, 2011

Virgin Atlantic is enrolling the help of the European Commission and the UK’s Office of Fair Trading after British Airways said it had successfully managed to purchase six take off and landing spots from Lufthansa owned BMI. The sale means that BA’s parent company, International Airlines Group, now controls 45 per cent of the capacity at one of Europe’s busiest hubs.

According to a statement by Virgin, Sir Richard Branson, owner of Virgin Atlantic, is worried that BA is targeting BMI for its best bits which will leave an unattractive and unworkable airline up for sale. Sir Richard has been interested in BMI for some time and claims that interest was renewed when Lufthansa said it was looking at ways of disposing of the loss maker.

Virgin has also said that it did not consider going against its main rival for the Heathrow slots because it understood they were not for sale but for lease. BA claims to have purchased them outright.

According to Lufthansa, it is still looking for ways of getting rid of BMI. A spokesman said that the sale of the Heathrow slots has done nothing to dent the value of the airline or to reduce network quality because they were never a part of the carrier’s core activities.

BMI still owns a number of slots at Heathrow, although Lufthansa has declined to comment on whether it is in discussions to break them up further. British Airways maintains that its dominance at Heathrow is in line with flag carriers’ at major airports in other countries.

Europe agrees on standard plug for electric cars

Monday, September 26th, 2011

The automobile industry in Europe has agreed upon a standard system for charging electric vehicles. According to ACEA, the car manufacturers’ trade association, the introduction of a plug which fits all electric powered cars could then be used throughout the world. Ivan Hodac, general secretary of ACEA, said the recommendations should be adopted as quickly as possible by the European Commission, infrastructure providers and standardisation bodies.

Mr Hodac added that there are currently a number of different methods of charging electric vehicles and that this has meant fragmentation both in Europe and around the globe. As well as agreeing upon a standard plug, there will also have to be agreements on how much electricity is fed through it.

At the moment cars are being designed to slowly recharge through a domestic plug socket or quickly recharged using a fast charger. The industry has come up with recommendations which cover the whole of the charging infrastructure. The broad proposals also discuss how the cars should be linked to the grid and how electricity providers should charge customers.

Mr Hodac said that there were additional advantages to standardisation such as reduced costs and giving investors a certain degree of predictability. He added that he would like to see the standards implemented by 2017 so that they supported a wider rolling out of electric cars.

ACEA predicts that new sales of electric vehicles over the 2020 to 2025 period will be somewhere between three and 10 per cent of the market.

BMI sells six slots at Heathrow to BA

Friday, September 23rd, 2011

As German flag carrier Lufthansa looks at ways of disposing of loss making airline BMI, British Airways has agreed to purchase six of its landing and take off slots at Heathrow Airport. The value of the deal is yet to be announced. Slots at the London hub are some of the most sought after on the planet and can command extremely high prices.

International Airlines Group, which was formed at the beginning of the year when BA merged with Spanish flag carrier Iberia, was already the holder of by far the most slots at the airport. The acquisition from BMI will boost its overall share to 45 per cent. BMI has the second largest capacity at the hub.

The fact that BMI is selling off its most valuable asset probably means that rather than sell the airline off as a whole, Lufthansa has decided to break it up. Before the sale, analysts valued the British airline’s slots at around 460 million euros. When four pairs became available three years ago, US giant Continental Airlines agreed on a deal worth $209 million.

British Airways said in a statement that it wanted to begin using the slots by the end of October to expand both long- and short-haul operations. A spokeswoman for IAG said that the company was still interested in obtaining more capacity at Heathrow.

Castle Donington based BMI flies 57 aircraft through its three businesses: British Midland International, bmibabi and BMI Regional. However, the majority are leased which is an advantage if Lufthansa is looking to break the company up.

BAA warns that Heathrow needs to tap emerging markets

Thursday, September 22nd, 2011

The boss of the company in charge of running the UK’s busiest airport has warned that if Heathrow doesn’t start to better serve the emerging markets, the country could lose billions. Chairman of BAA, Colin Matthews, said that Heathrow had to keep up with rival airports by tapping into destinations where the economy was growing or risk becoming an island no longer in touch with the world’s most important markets.

BAA recently commissioned a report which suggests that over the coming decade £14 billion worth of business could be lost because of a lack of direct services to the cities of the emerging markets. Mr Matthews said that he believed that not having enough direct flights was already costing around £1.2 billion each year.

The report by Frontier Economics said that other European hubs were already serving 21 destinations in the emerging markets with direct services, none of which were served in a similar way from Heathrow. They included Guangzhou, Manila and Jakarta.

The analysis also showed that Frankfurt and Charles de Gaulle were flying around 1,000 more services annually than Heathrow was managing to China’s three biggest cities. Heathrow has already been told by the government that it will not be permitted to expand by building another runway.

Boris Johnson’s plans to create a new airport in the Thames Estuary have also been denied. Maria Eagle, transport spokeswoman for Labour, said it made no environmental or economic sense to simply rule out expanding airports in the south east of the country.

British Airways launches new ad campaign

Wednesday, September 21st, 2011

British Airways is launching its most ambitious advertising campaign in more than a decade. The flag carrier will use staff to promote its virtues as it hopes to finally put behind it the damage caused by a long-running dispute with cabin crew. Commercials on the television will be rolled out in the UK and America before being shown in other international markets. The ad will debut on the airline’s Facebook page.

Press ads will concentrate on the experience and expertise of BA staff. A picture of a human heart makes the point that BA is skilled in carrying precious cargo like donor organs. Another features a baby wrapped the jacket of a BA cabin crew member to show that staff are capable of dealing with emergencies like delivering babies.

BA is also promoting its commitment to superior customer service by retaining the motto: To Fly. To Serve. The airline’s chief executive, Keith Williams, said the campaign had been created to mark the beginning of a new chapter in BA’s history. He added that the last decade had been tough for the airline industry because of 9/11, political upheaval and a world-wide financial crisis.

Mr Williams went on to say that the future was looking much more positive and that he was confident about the airline moving forward.

The campaign is thought to have cost around £20 million. BA’s brand engagement head, Abigail Comber, said the advertising was meant to reignite pride in the flag carrier with customers, viewers and staff.

BA looks to replace its fleet of Boeing 747s

Tuesday, September 20th, 2011

Rival aircraft manufacturers Airbus and Boeing are being asked by British Airways to bid on providing a suitable replacement for the 747 jumbo. The flag-carrier is the owner of the largest fleet of the ageing jets on the planet with 50 planes currently in service and a further five in storage.

Alexander Grant, fleet manager for BA, said that the aircraft currently being considered were the Airbus A350-1000, which is the manufacturer’s largest widebody in the A350 series, the Boeing 787-10 and the 777-9X, also designed by Boeing. Grant told the International Society of Transport Aircraft Trading that BA hoped to see positive bids from both manufacturers by the end of the year.

Some of BA’s 747s will be replaced by the Airbus A380 superjumbo. The carrier has 12 of the double-decker giants on order and is expecting to start receiving them in 2013. The airline also has an order for 24 Boeing 787-8s and 787-9s, although there has been no confirmation as to when they will arrive.

According to chief of commercial planes at Boeing, Jim Albaugh, the 787-10 could be carrying fare paying passengers by 2016. Rather than design and manufacture a new 737 model, Boeing has decided on an engine refit. Randy Tinseth, marketing chief for the US manufacturer, said the move meant the company could put more of its thought into the 787-10.

He added that Boeing had been receiving a great deal of interest from potential buyers who are keen to see what the aircraft is capable of.

Middle Eastern airlines to grow rapidly over next five years

Monday, September 19th, 2011

Dubai based Emirates Airlines is expected to grow in terms of capacity by up to 12 percent each year to the middle of the decade according to a new report compiled by analysts. The airline is currently the largest in the world when it comes to international traffic, and by 2015 is also expected to have the largest fleet of wide-body planes.

The study of Middle Eastern Megacarriers has been put together by Boston Consulting Group. In just five years, the airline has managed to introduce 32 new destinations to its itinerary, triple revenues and capacity and improve operations in terms of load factors, utilisation of aircraft and yields.

Among the 157 aircraft it has in its fleet is the largest number of Airbus A380s of any carrier and presently Emirates boasts 114 destinations around the world in some 67 countries. Boston Consulting said that other Middle Eastern airlines were likely to put in a similarly strong performance by the middle of the decade with passenger capacity predicted to triple over the coming two decades.

Middle East Partner and Managing Director for the Group, Rend Stephan, explained that the region was important for carriers travelling on long-haul journeys and that the carriers’ based there were able to tap into cost advantages which enabled them to compete aggressively with other international rivals.

According to the International Air Transport Association, Middle Eastern airlines increased capacity by 8.9 per cent in July, which was still not enough to keep up with a growth of 9.7 per cent in demand.